Investment Horizon and the Market for Corporate Control: The Defensive Role of Long-Term Investments

2000 ◽  
Author(s):  
Ronen Israel ◽  
Qiang Johnny Ma
Keyword(s):  
Corporate Control ◽  
Investment Horizon ◽  
Market For Corporate Control ◽  
Defensive Role

Raiders Activity on the Market for Corporate Control as a Product of Coercive Entrepreneurship Evolution

2007 ◽  
pp. 80-92
Author(s):  
A. Kireev
Keyword(s):  
Corporate Control ◽  
Role Of Government ◽  
Market For Corporate Control ◽  
Basic Characteristics

The paper studies the problem of raiders activity on the market for corporate control. This activity is considered as a product of coercive entrepreneurship evolution. Their similarities and sharp distinctions are shown. The article presents the classification of raiders activity, discribes its basic characteristics and tendencies, defines the role of government in the process of its transformation.

Financial impact of high land prices on the viability of winery startup projects

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Michael Santos ◽  
Vincent Richman ◽  
Aidong Hu
Keyword(s):  
Net Present Value ◽  
Weighted Average ◽  
Capital Budgeting ◽  
Investment Horizon ◽  
Internal Rate Of Return ◽  
Content Type ◽  
Land Prices ◽  
Practical Implications

Purpose Does it make economic sense to invest in winery startups with high land prices? This paper aims to apply a capital budgeting analysis for a startup project to investigate the role of land prices in the decision-making of a wine entrepreneur. Design/methodology/approach This paper uses a capital budgeting analysis to evaluate the value of a winery project using the six investment criteria: net present value (NPV), internal rate of return (IRR), modified IRR, profitability index, payback period (PB) and discounted PB. Findings This study finds that high land prices are economically justifiable (NPV is greater or equal to zero) when the weighted average capital cost is sufficiently low for investors who are able to diversify risks and with access to a cheap source of funds. Additionally, this study demonstrates that wine entrepreneurs need a long-term investment horizon because the recovery of the initial investment in winery startup projects takes many years. Research limitations/implications The startup winery projects are heavily influenced by wine pricing, production and cost assumptions. As a result, different assumptions made at other wine regions may result in slightly different outcomes for the acceptability of the wine startup projects. Practical implications High land prices are economically justified for investors and entrepreneurs with the ability to diversify risk and access to cheap financial resources. As such, land prices can be a critical obstacle for individual entrepreneurs who experience a lack of capital. Social implications In the famous wine regions of the world, high land prices may result in more wineries being owned by the capital rich wine conglomerates. Originality/value This paper provides estimations of land prices based on financial methods to discuss the justification of observed prices and the implications regarding the ability of investors and entrepreneurs to access capital.

Volatility Decay and Diversification Role of Timberland as the Investment Horizon Lengthens

2021 ◽  
Author(s):  
Weiyi Zhang ◽  
Bin Mei
Keyword(s):  
High Risk ◽  
Serial Correlation ◽  
Private Equity ◽  
The United States ◽  
Investment Horizon ◽  
Holding Period ◽  
Asset Portfolio ◽  
Public Equity

Abstract Under the mean-variance efficiency framework, we investigate the role of timberland asset in a mixed-asset portfolio in the United States. Starting from a single period (quarterly) view, we first reveal the crucial role of serial correlation in defining an asset’s financial performance. Accordingly, we modify return, volatility, and correlation for multiyear horizons to account for the nature of long-term investments. Our results show that, although timberland is persistent in all portfolios, private-equity timberland can be substituted by other liquid assets, including public-equity timberland, as the lengthening holding period substantially reduces their volatilities. We conclude that private-equity timberland is a risk diversifier regardless of the length of the investment horizon, whereas public-equity timberland becomes a suitable diversifier only for long-term investors with high risk tolerance. Study Implications: Serial correlation influences an asset’s return, risk, and correlation with other assets as the investment horizon lengthens. Volatilities of large-cap stocks and public timber real estate investment trusts decay significantly when the holding period is longer than three years. Therefore, these liquid assets become more efficient in the long run. Regardless of the length of the investment horizon, private-equity timberland acts as a risk diversifier in a mixed-asset portfolio, whereas public-equity timberland is a suitable diversifier only for high risk, long-term investors.

Corporate Governance and Employee Participation

2010 ◽  
Author(s):  
Howard Gospel ◽  
Andrew Pendleton
Keyword(s):  
Corporate Governance ◽  
Corporate Control ◽  
Employee Participation ◽  
Information Flows ◽  
Market For Corporate Control ◽  
Governance Systems ◽  
Governance Process ◽  
Subsequent Discussion ◽  
Governance Institutions

This article examines the role and extent of employee participation in the main areas of corporate governance. It becomes apparent that there are considerable differences between countries in governance institutions and practices. Many of these differences hinge on the role of employees in the governance process. The article provides an overview of the main practitioner and academic perspectives on governance, highlighting differences in the role accorded to employees. It outlines the broad national and comparative perspectives to provide some context for the subsequent discussion of more specific aspects of employee involvement. The article also identifies the main elements of corporate governance systems: the involvement of owners, the role of governing boards, information flows and transparency, the remuneration of managers, and the market for corporate control. All these are addressed with reference to the actual and potential participation of employees. In the last section, some broad conclusions are drawn.

Sign in / Sign up

Export Citation Format

Share Document